WASHINGTON (Reuters) – Janet Yellen was surprised by the negative level where rates based on the choices made by some central banks have arrived. I said the same Fed chairman in a question-time in front of the Senate Banking Committee.
The Fed has not looked carefully at the legal aspects of negative rates, he said Yellen stated that he did not think that rates could have gone both negatively evaluating this policy in 2010 and still not be aware of legal limits on the use of such instruments.
A cut in US interest rates remains an unlikely scenario: “I do not think it is likely a reversal of course sufficient to make possible that the next move to be a rate cut. ”
“I also want to make it clear that the policy does not have a predetermined course and that if our perception of the risks and prospects changed so that it is appropriate, “the FOMC will have to consider the possibility.
The Fed chairman also said that the economy is still creating jobs in the manufacturing sector despite the weight exerted by the strength of the dollar.
the oil decline, according to Yellen, has so far had a negative impact on the prospects of economic growth. The Fed chairman also said that wage growth is not the litmus test for deciding to implement changes in monetary policy.
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